Assembly Bill No. 123–Committee on Judiciary

(On Behalf of Elko County)

February 4, 1999

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Referred to Committee on Judiciary

 

SUMMARY—Exempts certain common-interest communities from certain provisions of Uniform Common-Interest Ownership Act. (BDR 10-676)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to common-interest ownership; exempting common-interest communities located within certain counties from certain provisions of the Uniform Common-Interest Ownership Act; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 116.3108 is hereby amended to read as follows:

1-2 116.3108 1. A meeting of the units’ owners of an association must

1-3 be held at least once each year. A meeting of the executive board must be

1-4 held at least once every 90 days. Special meetings of the association may

1-5 be called by the president, a majority of the executive board or by units’

1-6 owners having 10 percent, or any lower percentage specified in the bylaws,

1-7 of the votes in the association.

1-8 2. [Not] Except as otherwise provided in subsection 6, not less than

1-9 10 nor more than 60 days in advance of any meeting, the secretary or other

1-10 officer specified in the bylaws shall cause notice to be hand-delivered or

1-11 sent prepaid by United States mail to the mailing address of each unit or to

1-12 any other mailing address designated in writing by the unit’s owner. The

1-13 notice of any meeting must state the time and place of the meeting and

1-14 include a copy of the agenda for the meeting. The notice must include

1-15 notification of the right of a unit’s owner to:

2-1 (a) Have a copy of the minutes or a summary of the minutes of the

2-2 meeting distributed to him upon request if he pays the association the cost

2-3 of making the distribution.

2-4 (b) Speak to the association or executive board, unless the executive

2-5 board is meeting in executive session.

2-6 3. The agenda for the meeting must consist of:

2-7 (a) A clear and complete statement of the topics scheduled to be

2-8 considered during the meeting, including, without limitation, any proposed

2-9 amendment to the declaration or bylaws, any fees or assessments to be

2-10 imposed or increased by the association, any budgetary changes and any

2-11 proposal to remove an officer or member of the executive board.

2-12 (b) A list describing the items on which action may be taken and clearly

2-13 denoting that action may be taken on those items.

2-14 (c) A period devoted to comments by units’ owners and discussion of

2-15 those comments. Except in emergencies, no action may be taken upon a

2-16 matter raised under this item of the agenda until the matter itself has been

2-17 specifically included on an agenda as an item upon which action may be

2-18 taken pursuant to paragraph (b).

2-19 4. If the association adopts a policy imposing a fine on a unit’s owner

2-20 for the violation of the bylaws or other rules established by the association,

2-21 the secretary or other officer specified in the bylaws shall prepare and

2-22 cause to be hand-delivered or sent prepaid by United States mail to the

2-23 mailing address of each unit or to any other mailing address designated in

2-24 writing by the unit’s owner, a schedule of the fines that may be imposed

2-25 for those violations.

2-26 5. Not more than 30 days after any meeting, the secretary or other

2-27 officer specified in the bylaws shall cause the minutes or a summary of the

2-28 minutes of the meeting to be made available to the units’ owners. A copy

2-29 of the minutes or a summary of the minutes must be provided to any unit’s

2-30 owner who pays the association the cost of providing the copy to him.

2-31 6. Except as otherwise provided in the declaration or bylaws, if a

2-32 common-interest community is located within a county whose population

2-33 is 100,000 or less, the notice described in subsection 2 is not required to

2-34 be provided.

2-35 Sec. 2. NRS 116.311 is hereby amended to read as follows:

2-36 116.311 1. If only one of several owners of a unit is present at a

2-37 meeting of the association, that owner is entitled to cast all the votes

2-38 allocated to that unit. If more than one of the owners are present, the votes

2-39 allocated to that unit may be cast only in accordance with the agreement of

2-40 a majority in interest of the owners, unless the declaration expressly

2-41 provides otherwise. There is majority agreement if any one of the owners

2-42 cast the votes allocated to that unit without protest made promptly to the

2-43 person presiding over the meeting by any of the other owners of the unit.

3-1 2. Votes allocated to a unit may be cast pursuant to a proxy executed

3-2 by a unit’s owner. If a unit is owned by more than one person, each owner

3-3 of the unit may vote or register protest to the casting of votes by the other

3-4 owners of the unit through an executed proxy. A unit’s owner may revoke

3-5 a proxy given pursuant to this section only by actual notice of revocation

3-6 to the person presiding over a meeting of the association. A proxy is void

3-7 if it is not dated or purports to be revocable without notice. A proxy

3-8 terminates [one] 1 year after its date, unless it specifies a shorter term.

3-9 3. If the declaration requires that votes on specified matters affecting

3-10 the common-interest community be cast by lessees rather than units’

3-11 owners of leased units:

3-12 (a) The provisions of subsections 1 and 2 apply to lessees as if they

3-13 were units’ owners;

3-14 (b) Units’ owners who have leased their units to other persons may not

3-15 cast votes on those specified matters; and

3-16 (c) Lessees are entitled to notice of meetings, access to records, and

3-17 other rights respecting those matters as if they were units’ owners.

3-18 [Units’] Except as otherwise provided in subsection 5, units’ owners must

3-19 also be given notice, in the manner provided in NRS 116.3108, of all

3-20 meetings at which lessees are entitled to vote.

3-21 4. No votes allocated to a unit owned by the association may be cast.

3-22 5. Except as otherwise provided in the declaration or bylaws, if a

3-23 common-interest community is located within a county whose population

3-24 is 100,000 or less, the notice described in subsection 3 is not required to

3-25 be given.

3-26 Sec. 3. NRS 116.31155 is hereby amended to read as follows:

3-27 116.31155 1. [An] Except as otherwise provided in subsection 2, an

3-28 association that is not a master association and levies an annual assessment

3-29 against each unit in the common-interest community of $500 or more

3-30 shall:

3-31 (a) If the association is required to pay the fee imposed by NRS 78.150

3-32 or 82.193, pay to the secretary of state at the time it is required to pay the

3-33 fee imposed by those sections a fee established by regulation of the

3-34 administrator of the real estate division of the department of business and

3-35 industry for every unit in the association.

3-36 (b) If the association is organized as a trust or partnership, pay to the

3-37 administrator of the real estate division of the department of business and

3-38 industry a fee established by regulation of the administrator for each unit in

3-39 the association. The fee must be paid on or before January 1 of each year.

3-40 2. The fees required to be paid pursuant to this section must be:

3-41 (a) Deposited with the state treasurer for credit to the fund for the

3-42 ombudsman for owners in common-interest communities created pursuant

3-43 to NRS 116.1117.

4-1 (b) Established on the basis of the actual cost of administering the office

4-2 of the ombudsman for owners in common-interest communities and not on

4-3 a basis which includes any subsidy for the office.

4-4 3. Except as otherwise provided in the declaration or bylaws, an

4-5 association of a common-interest community located within a county

4-6 whose population is 100,000 or less is not required to pay the fees

4-7 described in subsection 1.

4-8 Sec. 4. This act becomes effective on July 1, 1999.

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